Weyerhaeuser (WY) 8-K Weyerhaeuser Reports Second Quarter Results

Exhibit 99.2

Weyerhaeuser Company                                     

Q2.2011 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Operations

in millions	Q1			Q2						Year-to-date
	March 31, 2011			June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Net sales and revenues	$	1,422		$	1,610		$	1,641		$	3,032		$	2,924
Cost of products sold	1,177			1,343			1,314			2,520			2,416
Gross margin	245			267			327			512			508
Selling, general and administrative expenses	172			145			162			317			318
Research and development expenses	7			7			8			14			16
Charges for restructuring, closures and impairments	4			7			4			11			6
Other operating income, net	(174		)	(19		)	(2		)	(193		)	(72		)
Operating income	236			127			155			363			240
Interest income and other	11			9			12			20			54
Interest expense, net of capitalized interest	(93		)	(117		)	(155		)	(210		)	(261		)
Earnings from continuing operations before income taxes	154			19			12			173			33
Income taxes	(56		)	4			(4		)	(52		)	(42		)
Earnings (loss) from continuing operations	98			23			8			121			(9		)
Earnings (loss) from discontinued operations, net of income taxes	1			(13		)	6			(12		)	5
Net earnings (loss)	99			10			14			109			(4		)
Less: net earnings attributable to noncontrolling interests	—			—			—			—			(2		)
Net earnings (loss) attributable to Weyerhaeuser common shareholders	$	99		$	10		$	14		$	109		$	(6	)
Per Share Information
	Q1			Q2						Year-to-date
	March 31, 2011			June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Earnings (loss) per share attributable to Weyerhaeuser common shareholders, basic and diluted:
Continuing operations	$	0.18		$	0.04		$	0.04		$	0.22		$	(0.05	)
Discontinued operations	—			(0.02		)	0.03			(0.02		)	0.02
Net earnings (loss) per share	$	0.18		$	0.02		$	0.07		$	0.20		$	(0.03	)
Dividends paid per share	$	0.15		$	0.15		$	0.05		$	0.30		$	0.10
Weighted average shares outstanding (in thousands):
Basic	537,140			538,599			211,600			537,873			211,521
Diluted	540,476			541,095			212,103			540,790			211,521
Common shares outstanding at end of period (in thousands)	538,408			538,640			211,609			538,640			211,609

Page 1 of 9

Weyerhaeuser Company

Q2.2011 Analyst Package

Preliminary results, subject to audit

Consolidated Balance Sheet

in millions	March 31, 2011		June 30, 2011		December 31, 2010
ASSETS
Forest Products:
Current assets:
Cash and cash equivalents	$	1,459	$	877	$	1,466
Receivables, less allowances	505		533		451
Inventories	544		513		478
Prepaid expenses	85		115		81
Deferred tax assets	155		167		113
Total current assets	2,748		2,205		2,589
Property and equipment, net	3,151		3,083		3,217
Construction in progress	149		137		123
Timber and timberlands at cost, less depletion charged to disposals	4,003		3,987		4,035
Investments in and advances to equity affiliates	192		191		194
Goodwill	40		40		40
Other assets	424		511		363
Restricted assets held by special purpose entities	914		915		915
	11,621		11,069		11,476
Real Estate:
Cash and cash equivalents	4		4		1
Receivables, less allowances	54		36		51
Real estate in process of development and for sale	515		535		517
Land being processed for development	978		988		974
Investments in and advances to equity affiliates	15		15		16
Deferred tax assets	266		263		266
Other assets	119		121		120
Consolidated assets not owned	8		8		8
	1,959		1,970		1,953
Total assets	$	13,580	$	13,039	$	13,429
LIABILITIES AND EQUITY
Forest Products:
Current liabilities:
Accounts payable	$	359	$	326	$	340
Accrued liabilities	686		712		734
Total current liabilities	1,045		1,038		1,074
Long-term debt	4,710		4,192		4,710
Deferred income taxes	485		533		366
Deferred pension and other postretirement benefits	908		835		930
Other liabilities	405		412		393
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities	771		774		772
	8,324		7,784		8,245
Real Estate:
Long-term debt	348		318		350
Other liabilities	196		193		212
Consolidated liabilities not owned	8		8		8
	552		519		570
Total liabilities	8,876		8,303		8,815
Equity:
Total Weyerhaeuser shareholders' interest	4,702		4,734		4,612
Noncontrolling interests	2		2		2
Total equity	4,704		4,736		4,614
Total liabilities and equity	$	13,580	$	13,039	$	13,429

Page 2 of 9

Weyerhaeuser Company

Q2.2011 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Cash Flows

in millions	Q1			Q2						Year-to-date
	March 31, 2011			June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Cash flows from operations:
Net earnings (loss)	$	99		$	10		$	14		$	109		$	(4	)
Noncash charges (credits) to income (loss):
Depreciation, depletion and amortization	123			120			126			243			252
Deferred income taxes, net	39			(13		)	56			26			90
Pension and other postretirement benefits	24			19			(10		)	43			(11		)
Share-based compensation expense	14			3			6			17			12
Equity in loss of equity affiliates	2			1			—			3			3
Charges for impairment of assets	1			11			1			12			3
Net gains on dispositions of assets and operations	(156		)	(29		)	(10		)	(185		)	(93		)
Foreign exchange transaction gains	(7		)	(1		)	10			(8		)	—
Change in:
Receivables less allowances	(59		)	(10		)	(28		)	(69		)	(115		)
Receivable for taxes	1			—			(17		)	1			551
Inventories	(66		)	35			40			(31		)	(25		)
Real estate and land	(2		)	(32		)	(1		)	(34		)	(37		)
Prepaid expenses	(10		)	(4		)	6			(14		)	(7		)
Accounts payable and accrued liabilities	(78		)	3			(6		)	(75		)	(53		)
Deposits on land positions and other assets	—			(4		)	(6		)	(4		)	(3		)
Pension contributions	(1		)	(4		)	(6		)	(5		)	(138		)
Other	(33		)	11			14			(22		)	(58		)
Net cash from operations	(109		)	116			189			7			367
Cash flows from investing activities:
Property and equipment	(35		)	(39		)	(32		)	(74		)	(78		)
Timberlands reforestation	(12		)	(7		)	(7		)	(19		)	(20		)
Redemption of short-term investments	—			—			—			—			47
Proceeds from sale of assets and operations	193			3			15			196			130
Repayments from pension trust	—			—			96			—			146
Other	5			(10		)	(8		)	(5		)	(11		)
Cash from investing activities	151			(53		)	64			98			214
Cash flows from financing activities:
Notes, commercial paper borrowings and revolving credit facilities, net	—			—			—			—			(3		)
Cash dividends	(81		)	(80		)	(10		)	(161		)	(21		)
Change in book overdrafts	3			(1		)	(8		)	2			(12		)
Payments on debt	(2		)	(548		)	(548		)	(550		)	(565		)
Exercises of stock options	34			3			—			37			—
Other	—			(19		)	(1		)	(19		)	(3		)
Cash from financing activities	(46		)	(645		)	(567		)	(691		)	(604		)
Net change in cash and cash equivalents	(4		)	(582		)	(314		)	(586		)	(23		)
Cash and cash equivalents at beginning of period	1,467			1,463			2,160			1,467			1,869
Cash and cash equivalents at end of period	$	1,463		$	881		$	1,846		$	881		$	1,846
Cash paid (received) during the year for:
Interest, net of amount capitalized	$	156		$	91		$	120		$	247		$	273
Income taxes	$	2		$	13		$	(1	)	$	15		$	(445	)

Page 3 of 9

Weyerhaeuser Company	Total Company Statistics
Q2.2011 Analyst Package
Preliminary results, subject to audit

Special Items Included in Net Earnings

in millions	Q1			Q2						Year-to-date
	March 31, 2011			June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Net earnings (loss)	$	99		$	10		$	14		$	109		$	(6	)
Income tax adjustments	—			—			—			—			31
Gain on sale of wood products assets	—			—			(5		)	—			(31		)
Loss on early extinguishment of debt	—			16			33			16			33
Gain on sale of 82,000 acres of non-strategic timberlands	(96		)	—			—			(96		)	—
Charges for impairments	—			6			—			6			—
Net earnings before special items	$	3		$	32		$	42		$	35		$	27
	Q1			Q2						Year-to-date
	March 31, 2011			June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Net earnings (loss) per diluted share	$	0.18		$	0.02		$	0.07		$	0.20		$	(0.03	)
Income tax adjustments	—			—			—			—			0.15
Gain on sale of wood products assets	—			—			(0.03		)	—			(0.15		)
Loss on early extinguishment of debt	—			0.03			0.16			0.03			0.16
Gain on sale of 82,000 acres of non-strategic timberlands	(0.18		)	—			—			(0.18		)	—
Charges for impairments	—			0.01			—			0.01			—
Net earnings before special items per diluted share	$	—		$	0.06		$	0.20		$	0.06		$	0.13
Selected Total Company Items
in millions	Q1			Q2						Year-to-date
	March 31, 2011			June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Depreciation, depletion and amortization:
Cost of products sold	$	107		$	107		$	109		$	214		$	219
Selling, general and administrative expenses	16			13			17			29			33
Total depreciation, depletion and amortization	$	123		$	120		$	126		$	243		$	252
Pension and postretirement credits (costs):
Pension and postretirement costs allocated to business segments	$	(11	)	$	(16	)	$	(12	)	$	(27	)	$	(24	)
Pension and postretirement credits (costs) retained by Corporate segment	(12		)	(3		)	22			(15		)	38
Total company pension and postretirement credits (costs)	$	(23	)	$	(19	)	$	10		$	(42	)	$	14
Total decrease (increase) in Forest Products working capital	$	(192	)	$	(21	)	$	159		$	(213	)	$	564
Cash spent for capital expenditures	$	(47	)	$	(46	)	$	(39	)	$	(93	)	$	(98	)

Page 4 of 9

Weyerhaeuser Company	Timberlands Segment
Q2.2011 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Trade sales and revenues (unaffiliated customers)	$	230		$	288		$	225		$	518		$	427
Intersegment sales	191			134			123			325			294
Total net sales and revenues	421			422			348			843			721
Cost of products sold	320			296			260			616			537
Gross margin	101			126			88			227			184
Selling, general and administrative expenses	23			24			23			47			43
Research and development expenses	4			4			5			8			9
Charges for restructuring, closures and impairments	—			—			—			—			1
Other operating income, net	(166		)	(13		)	(9		)	(179		)	(19		)
Operating income	240			111			69			351			150
Interest income and other	1			1			1			2			1
Net contribution to earnings	$	241		$	112		$	70		$	353		$	151

Selected Segment Items

	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Depreciation, depletion and amortization	$	31		$	35		$	28		$	66		$	58
Total increase in working capital	$	(16	)	$	(40	)	$	(12	)	$	(56	)	$	(24	)
Cash spent for capital expenditures	$	(14	)	$	(14	)	$	(15	)	$	(28	)	$	(35	)

Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

	Q1.2011		Q2.2011		Q2.2010		YTD.2011		YTD.2010
Gain on sale of 82,000 acres of non-strategic timberlands	$	152	$	—	$	—	$	152	$	—

Segment Statistics

		Q1.2011		Q2.2011		Q2.2010		YTD.2011		YTD.2010
Third Party Net Sales and  Revenue (millions)	Logs:
	West	$	110	$	152	$	125	$	262	$	207
	South	41		49		37		90		64
	Canada	7		1		—		8		9
	Total Logs	158		202		162		360		280
	Pay as cut timber sales	8		8		9		16		17
	Timberlands exchanges and dispositions	21		39		13		60		48
	Higher and better use land sales	4		2		7		6		12
	Minerals, oil and gas	14		15		16		29		31
	Products from international operations	17		21		17		38		32
	Other products	8		1		1		9		7
	Total	$	230	$	288	$	225	$	518	$	427
Logs Third Party Sales Realizations (per cubic meter)	West	$	100.20	$	109.42	$	97.92	$	105.36	$	91.96
	South	$	41.22	$	40.59	$	44.38	$	40.88	$	43.87
	Canada	$	34.73	$	42.79	$	30.05	$	35.55	$	33.81
	International	$	18.61	$	21.41	$	19.33	$	20.08	$	19.87
Logs Third Party Sales Volumes (cubic meters, thousands)	West	1,095		1,391		1,276		2,486		2,251
	South	1,005		1,211		827		2,216		1,461
	Canada	194		23		15		217		274
	International	72		79		68		151		146
	Total	2,366		2,704		2,186		5,070		4,132
Logs Fee Depletion (cubic meters, thousands)	West	1,611		1,747		1,404		3,358		2,835
	South	2,180		2,355		1,881		4,535		4,021
	International	98		221		89		319		181
	Total	3,889		4,323		3,374		8,212		7,037

Page 5 of 9

Weyerhaeuser Company	Wood Products Segment
Q2.2011 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Trade sales and revenues (unaffiliated customers)	$	624		$	702		$	789		$	1,326		$	1,393
Intersegment sales	21			24			20			45			36
Total net sales and revenues	645			726			809			1,371			1,429
Cost of products sold	630			723			743			1,353			1,359
Gross margin	15			3			66			18			70
Selling, general and administrative expenses	55			54			72			109			140
Research and development expenses	1			1			2			2			3
Charges for restructuring, closures and impairments	2			13			1			15			2
Other operating income, net	(5		)	(4		)	(5		)	(9		)	(51		)
Operating loss	(38		)	(61		)	(4		)	(99		)	(24		)
Interest income and other	2			—			1			2			2
Net contribution to earnings	$	(36	)	$	(61	)	$	(3	)	$	(97	)	$	(22	)

Selected Segment Items

	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Depreciation, depletion and amortization	$	40		$	37		$	45		$	77		$	90
Total decrease (increase) in working capital	$	(117	)	$	45		$	51		$	(72	)	$	(83	)
Cash spent for capital expenditures	$	(6	)	$	(8	)	$	(5	)	$	(14	)	$	(7	)

Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

	Q1.2011		Q2.2011		Q2.2010		YTD.2011		YTD.2010
Gain on sale of assets	$	—	$	—	$	8	$	—	$	52
Charges for impairments	—		9		—		9		—
Total	$	—	$	9	$	8	$	9	$	52

Segment Statistics

in millions, except for third-party sales realizations		Q1.2011		Q2.2011		Q2.2010		YTD.2011		YTD.2010
Structural Lumber (board feet)	Third Party Net Sales and Revenue	$	260	$	290	$	308	$	550	$	549
	Third Party Sales Realizations	$	315.26	$	300.84	$	347.89	$	307.50	$	333.42
	Third Party Sales Volumes	826		963		884		1,788		1,645
	Production Volumes	893		903		846		1,796		1,647
Engineered Solid Section (cubic feet)	Third Party Net Sales and Revenue	$	62	$	71	$	79	$	133	$	145
	Third Party Sales Realizations	$	1,851.05	$	1,904.83	$	1,784.77	$	1,879.54	$	1,749.96
	Third Party Sales Volumes	3		4		4		7		8
	Production Volumes	4		3		4		7		8
Engineered I-joists (lineal feet)	Third Party Net Sales and Revenue	$	33	$	48	$	49	$	81	$	97
	Third Party Sales Realizations	$	1,266.51	$	1,258.14	$	1,178.95	$	1,261.55	$	1,133.90
	Third Party Sales Volumes	26		38		41		64		85
	Production Volumes	30		34		41		64		82
Oriented Strand Board (square feet 3/8')	Third Party Net Sales and Revenue	$	85	$	89	$	116	$	174	$	182
	Third Party Sales Realizations	$	192.16	$	178.43	$	266.28	$	184.91	$	236.50
	Third Party Sales Volumes	445		498		437		943		771
	Production Volumes	494		518		468		1,012		846
Softwood Plywood (square feet 3/8')	Third Party Net Sales and Revenue	$	17	$	16	$	23	$	33	$	39
	Third Party Sales Realizations	$	263.83	$	271.01	$	312.95	$	267.37	$	291.15
	Third Party Sales Volumes	63		61		75		124		135
	Production Volumes	53		48		64		101		112
Hardwood Lumber (board feet)	Third Party Net Sales and Revenue	$	58	$	63	$	64	$	121	$	118
	Third Party Sales Realizations	$	845.42	$	858.51	$	833.30	$	852.15	$	824.30
	Third Party Sales Volumes	69		73		76		142		142
	Production Volumes	58		62		61		120		120

Page 6 of 9

Weyerhaeuser Company	Cellulose Fibers Segment
Q2.2011 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Total net sales and revenues	$	506		$	526		$	468		$	1,032		$	878
Cost of products sold	400			422			375			822			742
Gross margin	106			104			93			210			136
Selling, general and administrative expenses	22			24			20			46			40
Research and development expenses	2			2			2			4			4
Other operating income, net	(5		)	(3		)	(5		)	(8		)	(7		)
Operating income	87			81			76			168			99
Interest income and other	(1		)	(1		)	(2		)	(2		)	(6		)
Net contribution to earnings	$	86		$	80		$	74		$	166		$	93

Selected Segment Items

	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Depreciation, depletion and amortization	$	36		$	35		$	36		$	71		$	72
Total decrease (increase) in working capital	$	20		$	(32	)	$	(24	)	$	(12	)	$	(34	)
Cash spent for capital expenditures	$	(26	)	$	(23	)	$	(19	)	$	(49	)	$	(54	)

Segment Statistics

		Q1.2011		Q2.2011		Q2.2010		YTD.2011		YTD.2010
Pulp (air-dry metric tons)	Third Party Net Sales and Revenue (millions)	$	398	$	409	$	354	$	807	$	675
	Third Party Sales Realizations	$	912.12	$	960.04	$	856.22	$	935.81	$	808.56
	Third Party Sales Volumes (thousands)	436		426		413		862		835
	Production Volumes (thousands)	437		410		414		847		851
Liquid Packaging Board (tons)	Third Party Net Sales and Revenue (millions)	$	85	$	93	$	90	$	178	$	161
	Third Party Sales Realizations	$	1,148.29	$	1,194.46	$	1,091.14	$	1,171.86	$	1,073.47
	Third Party Sales Volumes (thousands)	74		77		83		151		150
	Production Volumes (thousands)	67		80		81		147		150

Page 7 of 9

Weyerhaeuser Company	Real Estate Segment
Q2.2011 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2011			Q2.2011		Q2.2010		YTD.2011		YTD.2010
Total net sales and revenues	$	160		$	191	$	257	$	351	$	408
Cost of products sold	126			147		189		273		310
Gross margin	34			44		68		78		98
Selling, general and administrative expenses	35			36		41		71		75
Charges for restructuring, closures and impairments	1			1		2		2		3
Other operating costs, net	—			—		1		—		2
Operating income (loss)	(2		)	7		24		5		18
Interest income and other	1			1		3		2		42
Loss attributable to noncontrolling interests	—			—		—		—		(2		)
Net contribution to earnings	$	(1	)	$	8	$	27	$	7	$	58

Selected Segment Items

	Q1.2011			Q2.2011		Q2.2010		YTD.2011			YTD.2010
Depreciation and amortization	$	3		$	3	$	5	$	6		$	8
Cash spent for capital expenditures	$	(1	)	$	—	$	—	$	(1	)	$	(1	)

Segment Statistics

	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Net sales and revenues:
Single-family housing	$	152		$	180		$	233		$	332		$	376
Land	7			11			23			18			30
Other	1			—			1			1			2
Total net sales and revenue	$	160		$	191		$	257		$	351		$	408
Single-family homes sold	535			521			491			1,056			1,111
Single-family homes closed	363			459			625			822			1,018
Single-family homes sold but not closed (backlog)	611			673			743			673			743
Single-family average price of homes closed (in thousands)	$	419		$	391		$	371		$	404		$	369
Single-family home gross margin - excluding impairments (1)	21.7		%	22.4		%	23.9		%	22.0		%	22.2		%

⁽¹⁾ Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).

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Weyerhaeuser Company	Corporate & Other Segment
Q2.2011 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Trade sales and revenues (unaffiliated customers)	$	58		$	66		$	66		$	124		$	118
Intersegment sales	3			5			5			8			9
Total net sales and revenues	61			71			71			132			127
Cost of products sold	63			71			48			134			90
Gross margin	(2		)	—			23			(2		)	37
Selling, general and administrative expenses	44			14			13			58			34
Research and development expenses	—			—			(1		)	—			—
Charges for restructuring, closures and impairments	1			2			1			3			—
Other operating costs (income), net (1)	2			14			11			16			(2		)
Operating income (loss)	(49		)	(30		)	(1		)	(79		)	5
Interest income and other	8			8			9			16			15
Net contribution to earnings	$	(41	)	$	(22	)	$	8		$	(63	)	$	20

⁽¹⁾ Other operating costs for second quarter and year-to-date 2011 include charges of $13 million related to businesses we have divested in prior years and are included in discontinued operations.

Selected Segment Items

	Q1.2011			Q2.2011			Q2.2010			YTD.2011			YTD.2010
Depreciation, depletion and amortization	$	13		$	10		$	12		$	23		$	24
Total decrease (increase) in working capital	$	(79	)	$	6		$	144		$	73		$	705
Cash spent for capital expenditures	$	—		$	(1	)	$	—		$	(1	)	$	(1	)
Share-based compensation expense (income)	$	16		$	(5	)	$	(4	)	$	11		$	(1	)
Foreign exchange gains (losses)	$	6		$	1		$	(8	)	$	7		$	1
Pension and postretirement credits (costs) retained by Corporate segment	$	(12	)	$	(3	)	$	22		$	(15	)	$	38

Corporate and Other includes results of our transportation operations, certain gains or charges that are not related to an individual operating segment and the portion of items such as share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses and other general and administrative expenses that are not allocated to the business segments. We sold our five short line railroads at the end of 2010. We entered into an agreement to sell Westwood Shipping Lines, our last transportation business, in a transaction that is subject to regulatory approval and is expected to close in the third quarter.

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